New York S 5644: Establishes a MWBE or SDVOBE subcontractor tax credit

Bill Text

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S05644 Summary:

BILL NOS05644 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORBAILEY

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§210-B & 606, Tax L

&nbsp

Establishes a tax credit for contractors who award a subcontract to MWBE or SDVOBE subcontractors in furtherance of a state contract.

Go to top S05644 Actions:

BILL NOS05644 

&nbsp

02/26/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS05644 Committee&nbspVotes:

Go to topS05644 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05644 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5644

 2025-2026 Regular Sessions

 IN SENATE

 February 26, 2025
 ___________

 Introduced by Sen. BAILEY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Budget and Revenue

 AN ACT to amend the tax law, in relation to establishing a MWBE or
 SDVOBE subcontractor tax credit

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 210-B of the tax law is amended by adding a new
 2 subdivision 61 to read as follows:
 3 61. MWBE or SDVOBE subcontractor tax credit. (a) Allowance of credit.
 4 For taxable years beginning on or after January first, two thousand
 5 twenty-six, an eligible taxpayer shall be allowed a credit, to be
 6 computed as provided in this subdivision, against the tax imposed by
 7 this article, for awarding a professional services, trades, or supplier
 8 subcontract to a qualified subcontractor in furtherance of a state
 9 contract. The taxpayer may claim the credit in the year in which payment
 10 is made by the eligible taxpayer to the qualified subcontractor for the
 11 performance of such subcontract. If the taxpayer claims the credit
 12 allowed under this section, the taxpayer may not use the awarding of a
 13 subcontract to a qualified subcontractor that is the basis for this
 14 credit in the basis of any other credit allowed under this article.
 15 (b) Definitions. (i) The term "qualified subcontractor" shall mean a
 16 minority or woman-owned business enterprise certified pursuant to arti-
 17 cle fifteen-A of the executive law or a service-disabled veteran-owned
 18 business enterprise certified pursuant to article three of the veterans'
 19 services law that maintains their headquarters within New York state.
 20 (ii) The term "eligible taxpayer" shall mean a contractor that awards
 21 a subcontract to a qualifying subcontractor in furtherance of a state
 22 contract.
 23 (iii) The term "state contract" shall mean a contract for the purchase
 24 by the state of goods, property, or services or for the construction of
 25 any building or structure for the state, which contract is executed by

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD10258-01-5

 S. 5644 2

 1 any department, board, bureau, commission, or agency of the state, or by
 2 any officer, official, employee, or agent thereof.
 3 (c) Contractor prohibition. A contractor shall not discharge a
 4 contract with a subcontractor and hire a qualifying subcontractor solely
 5 for the purpose of qualifying for this credit unless the previous
 6 contractor has been removed for reasons not under the control of the
 7 contractor.
 8 (d) Amount of credit. The amount of credit shall be thirty-five
 9 percent of the total amount of payments made by the eligible taxpayer to
 10 a qualifying subcontractor in the taxable year in which such credit is
 11 claimed.
 12 (e) Carryovers. The credit allowed under this subdivision for any
 13 taxable year shall not reduce the tax due for such year to less than the
 14 amount prescribed in paragraph (d) of subdivision one of section two
 15 hundred ten of this article. However, if the amount of credit allowable
 16 under this subdivision for any taxable year reduces the tax to such
 17 amount or if the taxpayer otherwise pays tax based on the fixed dollar
 18 minimum amount, any amount of credit not deductible in such taxable year
 19 may be carried over to the following three years and may be deducted
 20 from the taxpayer's tax for such year or years.
 21 § 2. Subparagraph (B) of paragraph 1 of subsection (i)